The FCA's day-to-day supervision of regulated firms

The FCA's day-to-day supervision of regulated firms is based on three key ‘pillars':

Pillar one

Pillar one is all about the proactive supervision of firms. The FCA will directly supervise firms through the use of intelligence and visits to identify and then mitigate the key drivers of conduct risk within firms. It will focus on firms whose activities are causing poor outcomes for consumers, for example, by failing to properly disclose information related to products or interest rates to consumers, or any other behaviours that could impact the integrity of the market and consumer protection.

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Pillar two

Pillar two is reactive supervision. The FCA will rapidly deal with events that could result, or are already resulting in, poor outcomes for consumers or, detriment to market integrity.

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Pillar three

Pillar three is basically forward-looking - carrying out in-depth thematic reviews of issues or products in a sector where there could be increased risks to consumers.

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